REPORT

Minimize Risk - Maximize Performance
May 2013

www.smartrisk.biz

 Mailing List Link:

Join Our Mailing List

Link to Forward Newsletter:

Forward Newsletter  

View Past Newsletters:


Archive Newsletters
Link


LiveSurveys 

Take 2 minutes and complete these 10 question radio button surveys. Results will be provided in a future newsletters,  articles and industry training sessions. 


Economics Impacting A/E's

Economic Survey Link



Green Project Survey


Survey Reports 


 *A/E Law Firm Survey*

 Detailed survey of 20 A/E Law Firms across the United States providing regional and national perspectives on legal developments, claims and root causes driven by economic conditions with loss prevention recommendations and other insights from these legal experts.  


A/E Law Firm Survey Report Link



*A/E Survey Report*
Insightful survey report of A/E firms and how economic conditions are impacting business opportunities and affecting business decisions today.  

A/E Firms Survey Report Link


*A/E Insurance Carriers
Survey Report"

Survey of 17 insurance carriers specializing in A/E Professional Liability (PL) insurance identifies current economic risk factors
, services offerings, claim trends and recommendations for reducing liability exposures.  

PL Insurance Carrier Report
Link

Quick Links Section

Insurance, Risk or Professional Liability (PL) Question?   

Ask SmartRisk



 

Bangladesh and Reasons Buildings Collapse

 

Introduction

 

On April 24, 2013, an eight-story commercial building, Rana Plaza, collasped in Savar, a sub-district near Dhaka, the capital of Bangladesh. At least 547 people died and around 2,500 were injured with many still missing. It is considered to be the deadliest garment-factory accident in history. It has been reported that the elected mayor of the municipality has been suspended for alleged negligence in approving the design and layout of the building including the illegal addition of three stories for the Rana Plaza. There are significant risks for U.S. design firms working on projects in developing countries including the risk of project owners and officials circumventing the design and construction process.

 

Bangladesh Garment Factories

 

Bangladesh has about 4,000 garment factories and exports clothes to leading Western retailers, and industry leaders hold great influence in the South Asian nation. Its garment industry was the third largest in the world in 2011, after China and Italy. The Bangladesh Garment Manufacturers and Exporters Association estimated the industry at $20 billion-a-year and makes up 80% of Bangladesh's total exports. Dhaka has become one of the worlds most populous and fastest-growing megacities, driving up the price of land and straining the country's electrical, power and gas systems. The shortage of land and a propensity for flooding in Bangladesh has prompted many factory owners to build up, rather than out. Additional floors often are hastily added without reference to building codes, approvals and proper construction practices. Many factory owners who couldn't afford to build new buildings because of the high cost of land and limited access to utilities converted hundreds of residential and other buildings into makeshift garment factories to keep up with the demand from Western retailers.

 

Economic Impact

 

Before the Rana Plaza building collapse, retailers including Wal-Mart Stores and Levi Strauss & Co. were backing away from factories run by multiple tenants in buildings erected several stories high. Safety experts say those buildings pose higher risks than low-rise factories with single tenants in developing countries. Already, the country is losing garment orders after several industrial accidents and political turmoil, in a trend that could hobble its economy and open the doors for other Asian exporters to boost their sales to the U.S. and Europe. The Walt Disney Co., the world's largest licenser, told licensees in March that they could no longer manufacture its branded merchandise in Bangladesh. The move was part of a larger effort to shift the production of Disney-branded goods out of what it considers countries where factories run a high-risk of safety problems, including Bangladesh, Pakistan and Venezuela.

 

Building Failures

 

In developing countries, building failures can be blamed on one, or several factors including the building owners, and developer’s failure to comply with building regulations, or design professionals, contractor as well as government officials failure to perform its duty in compliance with established building codes and construction protocols. Faulty design, poor construction workmanship, product failure or lack of following building codes and regulatory requirements have attributed to building failures and collaspe in these countries.

 

In a building collapse, a structural failure occurs when the material is stressed to its strength limit, thus causing fracture or excessive deformations. In a well-designed system, a localized failure should not cause immediate or even progressive collapse of the entire structure. The causes of a building collapse can usually be attributed to one, or a combination of the following:

 

  • Design Error
  • Poor Construction Workmanship
  • Extraordinary Loads
  • Time and Cost Restrictions
  • Professional Ethics and Regulatory Compliance

 

 

Design Error

 

U.S. design firms should be cautious when offering services on international projects and especially in developing countries. Design errors could be caused by local, or inexperienced firms hired to support the project.  The errors do not only mean an error in a design plan and/or calculation. It also relates to a failure to account for the appropriate structural loads of the building, the use of incorrect theories, reliance on local information and data that is inaccurate, not considering the effects of spontaneous stresses of the region, and the improper selection of materials or products.

 

Buildings are supposed to be designed to support certain loads. The loads include the weights of the people, objects and the pressure of rain, snow and wind on the building. Together these are called live loads. In developing countries, these loads are routinely underestimated compared to the actual number with the overcrowding of people and equipment placed in the building. The dead load is the building itself. A building collapse caused by a design error could be the miscalculation and detailing in the plans including structural and architectural drawings and the failure to view the building as a whole single unit; lack of design knowledge and experience, lack of adequate soil samples, investigation, proper recommendations including compaction; lack of the use of laboratory tested building materials and the use of a Quality Control & Quality Assurance process.

 

Poor Construction Workmanship

 

The selection of the contractor and subcontractors is critical. Faulty construction and poor workmanship has been one of the major causes of structural and building failures in developing countries. This includes the use of salty sand to create concrete, the use of inferior steel or an inadequate amount of rebar specified, poor riveting, improper tightening torque of nuts, bad welds, and the use of other improper construction practices.  Collapse may arise from the use of a local, inexperienced site engineer observing the construction process; lack of proper construction experience and supervision; lack of inspection, and the use of substandard building materials.

 

Extraordinary Loads

 

Extraordinary loads are often weather related such as heavy snowfall from a blizzard, the shaking created by an earthquake, or the winds and rain of a hurricane or typhoon. The analysis of these loads is primarily based on local information and data that can be provided by regional representatives. A building that has been designed and constructed considering the extraordinary loads for the location and region should be capable of meeting the load challenges.

 

Time and Cost Restrictions

 

On international and developing country projects, there has been excessive involvement and restriction placed by owners that can easily compromised the quality of a building. These have been driven when an owner is focused primarily on saving time and reducing construction costs. Limited budgets and reducing a project schedule beyond a reasonable timeframe can easily compromise the quality of the construction and the selection of the materials used. Critical decisions made regarding construction material could reduce the characteristic strength and the buildings response when exposed to the internal and external stresses. These decisions can eventually lead to collapse, if not immediately, but most likely over time.

 

Professional Ethics and Regulatory Compliance

 

When the entire project team involved in the daily construction work does not follow proper professional ethics as it relates to construction practices, discipline and respect for standards, this is cause for professional negligence as well as poor construction workmanship. In developing countries, these practices can be difficult to manage that can lead to building failure and collapse during construction or after the completion of a project. The failure by political officials, regulatory agents, and local authorities responsible for inspecting building sites has contributed to building collapses by not following, or by circumventing the established building and approval process. At his point, it appears this is one of the main alleged causes for the Rana Plaza collapse in Bangladesh.



You are welcome to forward this newsletter to others who may be interested.


Thank you.


Feedback or Comment?  Comment Link


SmartRisk



SmartRisk is a leading risk and performance management consultancy for design and building professionals. Through firm specific risk assessments, training and consulting, services focus on improving overall performance, profitability and reducing insurance costs through tailored risk management solutions.

If you have any questions about our services, or would like dicusss how we could assist your efforts, please contact us.

Thank you,

Timothy J. Corbett, BSRM, MSM, LEED GA
Founder & President
626-665-8150
tcorbett@smartrisk.biz
www.smartrisk.biz.

Copyright and Information Only. This newsletter is for information purposes only and should not be construed nor relied upon as guidance, regulatory or legal advice. Readers should consult with appropriate counsel regarding their specific situations and circumstances. SmartRisk shall not be liable for any errors in content, or for any actions taken in reliance thereon.

If you would like to be removed from the SmartRisk Report mailing list, please use the link below.   

T: 626-665-8150
Email:
info@smartrisk.biz
www.smartrisk.biz